(Nov 7): Nvidia Corp chief executive officer Jensen Huang said his company is effectively blocked from selling its AI chips into China for now, as Washington and Beijing each impose restrictions on its sales into the world’s largest semiconductor market.
Huang arrived in Taiwan Friday ahead of meetings with longtime partner Taiwan Semiconductor Manufacturing Co after a whirlwind global tour that included unusually controversial comments about the US-China AI race. The Nvidia chief was quoted in a Financial Times story as saying “China will win” that competition because of lower energy expenses and more favourable regulations. Huang explained he merely intended to point out the Asian country’s prowess in the fledgling technology.
The 62-year-old founder has repeatedly said he’d like to do more business in China, but political tensions between the American and Chinese governments have derailed those ambitions. President Donald Trump said in October he would raise the issue of selling Nvidia’s Blackwell chips — the current leading-edge AI chip line — to China ahead of his meeting Xi Jinping, but later walked back those comments and ultimately never discussed the matter with the Chinese leader.
In Taiwan Friday, Huang said Nvidia isn’t trying to revive efforts to get Blackwell AI chips to Chinese firms.
“There are no active discussions. Currently, we’re not planning to ship anything to China,” Huang said from Tainan, south of Taipei.
Nvidia has Washington’s blessing to sell its less advanced H20 chips to Chinese customers, but Beijing has told its companies to refrain from buying those products in favour of domestic supplies. Companies such as Huawei Technologies Co and Cambricon Technologies Corp are developing their own AI chips, and the Communist Party would like to support local industry — in part so that China is not dependent on American technologies.
See also: China lifts Nexperia chip ban, says German auto supplier
“It’s up to China when they would like Nvidia products to go back to serve the Chinese market,” Huang said. “I look forward to them changing their policy, and hopefully we’ll be able to serve the Chinese market again.”
Huang has warned that US export controls could backfire because they will compel China to create powerful competitors in AI chips and technologies.
See also: AI chip boom fuels Taiwan’s fastest export gain in 15 years
Nvidia has added US$1 trillion to its market value in a matter of months, becoming the first US$5 trillion company in history as Huang travelled from Washington to South Korea striking deals with companies looking to tap its artificial intelligence expertise. While the stock has lost steam in recent days, Nvidia remains the most valuable business on the planet, ahead of tech peers Apple Inc. and Microsoft Corp.
Huang has pushed to expand the use of Nvidia’s technology across regions and industries, and alleviate concerns that the trillions of dollars in planned AI investments — such as data centres and Nvidia chips — will pay off.
Among Nvidia’s challenges are rival chipmakers Advanced Micro Devices Inc and Broadcom Inc that are seeking their own AI payoff.
Huang has made the case that Nvidia has an enormous opportunity in China if not for the clash between Washington and Beijing. If Nvidia were allowed to ship more capable products to the Asian nation, it would have a US$50 billion opportunity there, Huang said during earnings in August. Huge demand for AI systems in China means that market is set to grow at 50% per year, he said.
The China setback has fed into concerns among some Wall Street investors about the sustainability of extraordinary spending on AI. They fear that artificial intelligence risks falling short on its promise of generating new streams of revenue that can justify hundreds of billions of dollars in capital expenditures.
Uploaded by Chng Shear Lane
